Consumer Law, Warranties Case Study

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erik8tlw

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Lucy, who owns a saloon, entered into a contract with Beauty Sdn Bhd, a manufacturer of shampoo, for the purchase of 300 boxes of 'high quality, super shining shampoo'. When the product was delivered, Lucy found the shampoo to be very poor quality and unsuitable for hair. She wishes to sue Beauty Sdn Bhd for breach of contract. However, Beauty Sdn Bhd denies liability relying on a clause in the contract which states, 'Beauty Sdn Bhd does not give any warranty, express or implied, as to the quality of the product contracted for'. Advise Lucy whether she may be successful if she sues Beauty Sdn Bhd for breach of contract.
 
Lucy, who owns a saloon, entered into a contract with Beauty Sdn Bhd, a manufacturer of shampoo, for the purchase of 300 boxes of 'high quality, super shining shampoo'. When the product was delivered, Lucy found the shampoo to be very poor quality and unsuitable for hair. She wishes to sue Beauty Sdn Bhd for breach of contract. However, Beauty Sdn Bhd denies liability relying on a clause in the contract which states, 'Beauty Sdn Bhd does not give any warranty, express or implied, as to the quality of the product contracted for'. Advise Lucy whether she may be successful if she sues Beauty Sdn Bhd for breach of contract.

How many points do we get for answering correctly?
 
Insufficient Facts!

When it comes to litigation, "success" is a very relative term; but as to whether Lucy has a case against the shampoo manufacturer and if any for what cause or causes of action, well, the hypothetical does not contain enough information for a proper analysis and determination of the buyer's rights and remedies under the contract.

A contract for the sale of goods is governed by section 2 of The Uniform Commercial Code (U.C.C.) which sets out clearly the duties of both the seller and the buyer when a dispute arises as a result of shipment of non-conforming goods, the very least of which is the opportunity to cure by the seller of which there is no mention in the hypo.

Before declaring "breach of contract" and commencing litigation, the buyer has to provide the seller with the chance to cure the non-conformity. There is also the determination (amongst many others) of whether the non-conformity of the goods amounts to a Partial Breach or Total Breach of the contract.

Are there more facts to this problem? Because as it is given, the question might as well be: How long is a piece of string?

fredrikklaw
 
erik8tlw
Asia

Dear Sir:

Re: Beauty Sdn Bhd shampoo claims

We act for Beauty Sdn Bhd. We are advised that you have recently dragged our client's name and good reputation through the muck on, among other things, internet chat sites including www.thelaw.com with willful or reckless disregard for the truth of your statements. Beauty Sdn Bhd provides quality grooming products for teacup poodles, Maltese, Pomeranians, and other fine handbag-style dogs. We take no responsibility for Ms. Lucy's failure to administer our product to its intended clientele. Nor can our client be held liable for the failure of Ms. Lucy to administer the requisite accompanying dosage of fish oil to the shampooees for their coats to have optimal sheen. We hereby demand that you immediately cease and desist publishing such nefarious and damaging falsehoods. Govern yourself accordingly.

Sincerely,
 
erik8tlw
Asia

Dear Sir:

Re: Beauty Sdn Bhd shampoo claims

We act for Beauty Sdn Bhd. We are advised that you have recently dragged our client's name and good reputation through the muck on, among other things, internet chat sites including www.thelaw.com with willful or reckless disregard for the truth of your statements. Beauty Sdn Bhd provides quality grooming products for teacup poodles, Maltese, Pomeranians, and other fine handbag-style dogs. We take no responsibility for Ms. Lucy's failure to administer our product to its intended clientele. Nor can our client be held liable for the failure of Ms. Lucy to administer the requisite accompanying dosage of fish oil to the shampooees for their coats to have optimal sheen. We hereby demand that you immediately cease and desist publishing such nefarious and damaging falsehoods. Govern yourself accordingly.

Sincerely,

I don't understand what you mean. Can you simplify it?
 
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